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Garnishment Rules and Regulations in St Lucia: Know Your Rights and Obligations

Introduction

In an effort to ensure timely payments towards the Fund under the relevant Act, the Director has the authority to issue demands for payment to individuals or employers who are indebted to or liable to make payments to employees or other persons.

Authority to Issue Demands for Payment

According to Section 79 of the Act, a demand for payment can be issued if it is determined that an individual is indebted to or liable to make a payment to another person and that this other person has an outstanding debt to the Fund.

Demand for Payment

A demand for payment must specify:

  • The name of the person indebted to the Fund
  • The amount of the debt, including any surcharge
  • In cases where the employer is being demanded to pay, the amount payable per pay period, which shall not exceed one-third of the employee’s remuneration.

Payment Obligations

Employers

Employers who receive a demand for payment relating to their employees are required to pay the Corporation at the same time as they would pay their employees. The amount paid must be the lesser of:

  • The amount demanded by the Director
  • The employee’s outstanding debt to the Fund

This payment obligation applies on each occasion that the employee is entitled to be paid until the employee’s debt is fully satisfied.

Individuals

Individuals who receive a demand for payment relating to someone else are required to pay the Corporation if they are indebted to or liable to make payments to this person. The amount payable must be the lesser of:

  • Their outstanding debt to this person
  • This person’s outstanding debt to the Fund

Consequences of Non-Compliance

It is essential to note that failure to comply with these garnishment rules and regulations can result in serious consequences, including fines up to $5,000 and imprisonment for a term not exceeding 12 months.

Important Note

Making payments to the Corporation does not relieve the individual or employer of their liability towards the person they would have originally paid, but rather discharges this liability to the extent of the payment made.

Importance of Adhering to Regulations

The St Lucia government emphasizes the importance of adhering to these regulations to ensure the timely collection of funds and maintain a fair and effective system for all parties involved.